The FL Crime data file on the text CD contains data for all counties in Florida on y = median annual income (thousands of dollars) for residents of the county and x = percent of residents with at least a high school education. The table shows some summary statistics and results of a regression analysis.

a. Find the correlation r. Interpret
(i) The sign and
(ii) The magnitude.
b. Find the predicted median income for a county that is 1 standard deviation above the mean on x , and use it to explain the concept of regression toward the mean.

Transcribed Image Text:

Income and Education for Florlda Countles Parameter Varlable Mean Std Dev Predictor Estlmate INCOME 245 4.69 EDUC 4.69 INTERCEPT -4.60 8.86 EDUC 69.49 0.42